Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Could A Big Move In The Global Stock Markets Be Setting Up? - 25th Jun 18
Soybean Price Hits 9 Year Low Due to Trade War - 24th Jun 18
Small Cap Stocks, Technology and Pharma To Drive A Renewed Market Rally - 24th Jun 18
Gerald Celente: Why You Still Need Guns, Gold, and a Getaway Plan... - 23rd Jun 18
Cheap Gold Stocks Bottom Basing - 23rd Jun 18
A Trade War Won’t Be Good for the US Dollar - 23rd Jun 18
SPX/Gold, Long-term Yields & Yield Curve 3 Amigos Update - 22nd Jun 18
Gold - How Long Can This Last? - 22nd Jun 18
Dow Has Fallen 8 days in a Row. Medium-long Term Bullish for Stocks - 22nd Jun 18
Trouble Spotting Market Trends? This Can Help - 22nd Jun 18
Financial Markets Analysis and Trend Forecasts 2018 - A Message from Nadeem Walayat - 21st Jun 18
SPX Bouncing Above Support - 21st Jun 18
Things You Need To Know If You Want To Invest In Bitcoin Now - 21st Jun 18
The NASDAQ’s Outperformance vs. the Dow is Very Bullish - 21st Jun 18
Warning All Investors: Global Stock Market Are Shifting Away From US Price Correlation - 20th Jun 18
Gold GLD ETF Update… Breakdown ? - 20th Jun 18
Short-term Turnaround in Bitcoin Might Not Be What You Think - 19th Jun 18
Stock Market’s Short Term Downside Will be Limited - 19th Jun 18
Natural Gas Setup for 32% Move in UGAZ Fund - 19th Jun 18
Magnus Collective To Empower Automation And Artificial Intelligence - 19th Jun 18
Trump A Bull in a China Shop - 19th Jun 18
Minor Car Accident! What Happens After You Report Your Accident to Your Insurer - 19th Jun 18
US Majors Flush Out A Major Pivot Low and What’s Next - 18th Jun 18
Cocoa Commodities Trading Analysis - 18th Jun 18
Stock Market Consolidating in an Uptrend - 18th Jun 18
Russell Has Gone Up 7 Weeks in a Row. EXTREMELY Bullish for Stocks - 18th Jun 18
What Happens Next to Stocks when Tech Massively Outperforms Utilities and Consumer Staples - 18th Jun 18
The Trillion Dollar Market You’ve Never Heard Of - 18th Jun 18
The Corruption of Capitalism - 17th Jun 18
North Korea, Trade Wars, Precious Metals and Bitcoin - 17th Jun 18
Climate Change and Fish Stocks – Burning Oxygen! - 17th Jun 18
A $1,180 Ticket to NEW Trading Opportunities, FREE! - 16th Jun 18
Gold Bullish on Fed Interest Rate Hike - 16th Jun 18
Respite for Bitcoin Traders Might Be Deceptive - 16th Jun 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

How to Play the Silver Price Rally

Commodities / Gold and Silver 2014 Feb 20, 2014 - 04:06 PM GMT

By: Investment_U

Commodities

Sean Brodrick writes: Silver is rallying sharply this month, up about 14% in the last three weeks and blowing out of its old range. After it closed yesterday at $21.85, I’m confident we’ll see silver test $27 or even $30 by the end of this year.

And that will make a huge difference for undervalued silver producers.


There are three reasons silver is going higher, and some ways you can make money as it rallies.

1. Mom and Pop Are Loading Up

Silver bullion coin sales rose to a record high in 2013. Here’s a yearly chart of U.S. Silver Eagle sales…

The U.S. Mint sold 42.675 million American Eagle silver bullion coins in 2013. That is 26% more than 2012, and it’s a new single-year record for the most purchased since the U.S. Mint began producing the one-ounce silver coin in 1986.

And it’s not just the U.S. Mint that sold a lot of silver coins. Mints in Australia, Austria and Canada have seen booms in silver coin sales of 41% or more.

And the buying continues. Sales of American Eagles are on pace for another record year.

2. Silver ETFs Are Buying, Too

Selling of gold by ETFs was a huge weight on gold prices last year. But silver didn’t see a rush of selling by ETFs. The amount of ounces they held stayed flat.

And now the ETFs are adding to their holdings.

Through February 14 of this year, the major silver-backed ETF products held 631 million ounces. That’s up 100.9% from their holdings at the end 2008.

3. Industrial Demand Is Set to Soar

Industrial demand accounts for more than half of total demand for silver. Smartphones, flat-panel TVs, solar panels, chemical reagents – they all use silver.

My sources say industrial demand for silver could rise 6% in 2014 to a record 511 million ounces. And that’s not including demand for jewelry and other uses.

No Surge in Supply

All this, and yet output from the world’s largest silver producer, Mexico, should remain nearly unchanged this year. China is the world’s No. 2 silver producer, and it’s the same story there. Worldwide, production is only expected to rise slightly in 2014.

In fact, most of the new silver that comes on line isn’t from primary silver producers. Instead, it is as a byproduct of mining for other metals. That puts a lid on production, no matter what the demand.

Individual miners offer a potentially very profitable way to play a rally in precious metals. But be careful; miners can be volatile. There’s one in particular that I’m very high on right now, and since recommending it to subscribers of Oxford Resource Explorer – the premier newsletter for investors in metals, miners and energy – this miner has picked up almost 15%. In fact, investors who took my advice and bought just 15 shares of this miner have already paid for their subscription. We’re about to send the next issue out shortly. To learn how to receive it, click here.

If you’re investing in silver on your own, you may be better off sticking to funds like the iShares Silver Trust (NYSE: SLV) and the Sprott Physical Silver Trust (NYSE: PSLV).

Good investing,

Sean

Source: http://www.investmentu.com/2014/February/nyse-slv-how-to-play-silver-rally.html

http://www.investmentu.com

Copyright © 1999 - 2013 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules